The legality of selling properties on eBay without clean titles

[TaoWanderer]

What is the name of your state? Nevada

I've heard a lot lately about people buying properties on Bid4assets and turning around and selling them on eBay. I know the rules of the tax auctions I've been in when you purchase a property there is a period of time (1 or 2 years depending on county) that the previous owner has to claim the excess proceeds from the sale. Which if they claim the excess proceeds it forfeits their right to object to the sale and the right to sue to try to get their property back by saying they didn't know about the sale. Which rarely, if ever, is the case that someone would try to sue to get there property back, because the county sends them so many notices that the person knows what is happening. However it is my understanding that if you try to sell the property before the excess proceeds have been claimed or the time limit has expired then it will NOT come up as having a clean title with a title company.

My question is, is it legal to sell the tax defaulted properties within that time limit without a clean title?

Are people selling those properties on eBay without clean titles or title insurance?

Thank you for any advice / information you can give me on this issue.

 

[efflandt]

Well you should certainly follow any state or local rules about notification and eviction or other obligations on your part with some proof, and get clear title, before attempting to sell tax lien property. Otherwise it will all fall back on you.

There is probably a bit more to it than the infomercials would lead you to believe, not to mention that some of their videos and quoted taxes may be years old. For one thing, the auction price may not be your full price (who pays taxes for the 2 years until you get clear title?). And I imagine anyone abandoning their property for back taxes is not going to take very good care of it, so you may have significant remodeling expenses to put it into saleable condition (especially if water pipes burst in a cold climate with no heat).

So probably the best thing that can happen in most cases is that the owner (or their lender) will come up with the back taxes and penalties to pay you.

The big easy money is made in the promotion of wishful thinking, not the plan itself.